China Daily Oil Summary: Refiners Rejecting Venezuelan Barrels

Chinese refiners are rejecting offers of Venezuelan oil as the price discount falls due to the easing of US sanctions while shipments to India are increasing according to Bloomberg.

• Venezuelan oil was less than 2% of China’s total imports in the first 10 months of 2023 but supplies can be as much as 20% of the feedstock at some private refineries according to Oilchem.
• The immediate impact on the Chinese market remains limited but there could be more downside risk to run rates late in Q1 as inventories dwindle and bitumen consumption picks up in the spring according to Energy Aspects.
• China will cut the retail and gasoline prices from Dec. 6, amid recent changes in global prices, according to Xinhua. Gasoline prices will decline by 55 y/t (around $7.7/mt) and diesel prices will fall by 50 y/t.
• China’s economic growth this year should print above 5%, according to Liu Shijin, deputy director at the Economic Committee of the 13th National Committee.
• Consumption may have accelerated, and investment growth picked up in November, Securities Daily reported citing economists. November retail sales may increase significantly to double digits from October’s 7.6% y/y.
• China's major state-owned banks were seen swapping yuan for U.S. dollars in the onshore swap market and selling those dollars in the spot market to support the yuan on Tuesday, two sources with knowledge of the matter said.